Investors prefer yen to greenback

In Asia trade, on Wednesday, the major Japanese currency appeared to climb higher against its competitors, as Tokyo shares extended their losses in the early afternoon, thus making nervous market participants vote for the safety of the yen.

The US dollar slumped to ¥111.63 – its lowest level since February 12, and then approaching ¥110.98 low set on February 11, before it leaped slightly to ¥111.71, compared to Tuesday’s result of ¥112.04 in New York.

Furthermore, the Japanese yen also grew against the common currency, dipping to an intraday low of ¥123.05 – the lowest value for three years, compared to Tuesday’s ¥123.33.

Sentiment hasn’t improved, thus weakening American stocks, which followed a sag in crude prices as well as comments from J.P. Morgan Chase regarding the risk of energy-company loan defaults. Crude prices decreased after the oil minister of Saudi Arabia told that the country isn’t planning production cuts in the nearer future.

Overnight, the risk-off mood turned into a weak tone in the Japanese shares from the opening bell. The Nikkei Stock Index managed to extend earlier losses to a 0.8% dip, enhancing demand for the overall safety of the yen.